A capacitated hub location problem under hose demand uncertainty
Date
2017
Authors
Meraklı, M.
Yaman, H.
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Abstract
In this study, we consider a capacitated multiple allocation hub location problem with hose demand uncertainty. Since the routing cost is a function of demand and capacity constraints are imposed on hubs, demand uncertainty has an impact on both the total cost and the feasibility of the solutions. We present a mathematical formulation of the problem and devise two different Benders decomposition algorithms. We develop an algorithm to solve the dual subproblem using complementary slackness. In our computational experiments, we test the efficiency of our approaches and we analyze the effects of uncertainty. The results show that we obtain robust solutions with significant cost savings by incorporating uncertainty into our problem.
Source Title
Computers and Operations Research
Publisher
Elsevier
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Keywords
Benders decomposition, Capacitated hubs, Demand uncertainty, Hose model, Hub location, Multiple allocation, Robustness, Costs, Hose, Location, Robustness (control systems), Stochastic programming, Benders decomposition, Capacitated hubs, Demand uncertainty, Hose models, Hub location, Multiple allocation, Uncertainty analysis
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Language
English